CPI, the Consumer Price Index, is a metric used to gauge the rate of inflation and deflation. It’s released by the Bureau of Labor Statistics (BLS) and reports the monthly fluctuations in consumer goods and services prices.
The CPI is a market-moving metric in that when it shows a deflation rate compared to the previous year, the market tends to react positively. On the other side, if it’s reported that inflation rose compared to the year before, this can negatively affect investors.
The Consumer Price Index was released for the month of March on April 10 and reported a 3.5% increase in overall inflation year over year. This was higher than expected, which shows that inflation is still an issue. The Federal Reserve also heavily uses inflation data to determine whether to raise, drop, or stabilize interest rates.
Here are a few stocks that offer steady growth and reliable returns in a volatile market environment, especially when dealing with the ups and downs caused by the release of CPI data.
Cardinal Health (CAH)
Cardinal Health (NYSE:CAH) is a leading producer of healthcare distributors. It sells healthcare services and products for hospitals, surgery centers, pharmacies, and laboratories. Over this past year, its share price has risen by 33%, and it is still trading at a relatively decent valuation. It could be a great time for investors to start buying up shares in this solid healthcare company.
On February 1, Cardinal Health reported its earnings for the second quarter of fiscal year 2024, in which it stated that total revenue grew by 12% year-over-year. It reported a net loss of $130 million in Q2 FY 2023, and for Q2 FY 2024, it increased to $354 million in net income.
CAH also raised its guidance for the full year 2024, in which it anticipates earnings per share to be within the range of $7.20-$7.35 from its previous revision of $6.75-$7.00.
Speciality Networks is a healthcare technology and research management company that Cardinal Health recently acquired for $1.2 billion in cash. It is predicted to help CAH develop its specialty treatment capabilities.
Argus recently upgraded Cardinal Health to a buy rating due to growing demand for its generic products. Cardinal Health is a great pick for investors during times of market volatility due to its stable share growth over the last several years.
Forestar Group (FOR)
Forestar Group (NYSE:FOR) is a real estate development company that specializes in residential lots ownership for the construction of primarily single-family homes.
On January 23, FOR released earnings for the first quarter of fiscal year 2024. It stated that total revenue increased 41%, and net income rose 84% year-over-year. Within the same time period, 3,150 residential lots were sold, an increase of 39%.
Over the past year, its share price has more than doubled, and, like Cardinal Health, it is trading at a great valuation.
Forestar’s full-year 2024 revenue remains unchanged from previous predictions of an estimated $1.4 to $1.5 billion. It expects to deliver approximately 15,000 residential lots.
Forestar’s recent earnings results beat analyst expectations by an impressive margin, and there was a massive jump in the number of residential lots sold. Forestar is poised to continue to grow and offer investors outstanding returns.
Blue Owl Capital (OBDC)
Blue Owl Capital (NYSE:OBDC) operates as an investment company for various businesses. It offers products such as direct lending, unsecured loans, warrants, preferred stock, and mezzanine loans among small and medium-sized enterprises.
Over the past year, its share price has risen by 23%, and it offers investors an outstanding dividend yield of 9.59% on an annual basis. Its latest dividend payment of thirty-seven cents per share will be distributed to investors on April 15. Their board of directors also announced a supplemental dividend of eight cents per share that was paid out on March 15.
On February 21, Blue Owl Capital released its earnings for the fourth quarter full year 2023, in which it stated that total investment income increased by 14% and net income slightly decreased by 2% year-over-year. Also, in the fourth quarter, it committed $1.3 billion to 17 new companies added to its portfolio and among 14 existing clients.
Its recent earnings beat, steady share price appreciation, and strong dividend yield make it a great option for investors looking to weather a volatile market environment.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.